New York Markets After Hours

Valero to spinoff retailer shares to investors

BenLefebvre

Valero Energy Corp.
VLO, -0.22%
will distribute to shareholders 80% of the equity in its retail segment as part of the refiner's plans to spin off the business, the company said Monday.

Valero, the world's largest independent refiner, plans to spin off its Corner Store segment by the beginning of the second quarter amid a general reshuffling of its portfolio. San Antonio-based Valero in 2012 bought refineries in Louisiana and the U.K. and is trying to sell its plants in California.

Valero hopes that the spin off of its 6,800-retail stations will unlock value in the business. The business, normally a bright spot in the company's earnings, struggled in the third quarter as average operating income fell to half of year-earlier levels, mostly because fuel margins plummeted 40%.

"Investors and analysts have treated Valero mainly as a refiner, ignoring higher potential value of the retail segment," the company said at a investors presentation.

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